Leticia James – the attorney general of the state of New York – has sued ANOTHER digital currency company, and it appears she’s gotten her way. At the time of writing, Brooklyn-based cryptocurrency firm Coin Café has settled with James for roughly $4.3 million.
Leticia James Sues Another Crypto Enterprise
The money will serve as restitution for investors that James says were defrauded by the company. It was initially alleged that Coin Café was a free platform to use. However, James says that many of the investors were subjected to secret fees for its wallet storage services.
James seems to have made it her mission in life to go after crypto companies as of late. The head honcho of New York’s legal scene has attacked a wide array of crypto firms including Celsius and Ku Coin, and many of these companies are either still stuck in lawsuits with James or were subjected to her antics in the past.
It’s unclear if James is just hellbent on going after the crypto market or if there’s a true point to what she’s doing. The fact remains that New York has long held an anti-crypto attitude that is probably going to mar the digital currency environment in the region for some time.
For example, not long ago, the Empire State announced that it was imposing a two-year crypto moratorium on all mining companies. Thus, no new firms could enter the state or set up shop there unless they were willing to fully operate on green energy, something that’s not quite possible right now.
Furthermore, New York has long made it difficult for crypto firms to establish headquarters within its borders given it’s been invoking BitLicense requirements for the past eight years. The BitLicense is considered one of the most restrictive forms of crypto legislation in history. The document requires all crypto companies in New York to follow very strict guidelines and pay exorbitant fees to remain in business and engage in transactions with customers in the Big Apple.
Many crypto executives have said it’s not possible to adhere to the BitLicense’s requirements and that the program seeks to limit innovation in the crypto arena. Rather than follow the directions set forth by the legislation, many have simply packed up and left the state, never to return.
Some Positive Steps
Despite all this, James has recently initiated a bill that, if passed, would create a basic framework for crypto activity in the state of New York. While the bill is not perfect and doesn’t hit all the major points, it would be a positive step forward in many ways given how lacking crypto regulation is at this time.
In addition, the state has also explored the possibility of using bitcoin as a method of payment.
